Loans for BOT projects may turn bad: SBV governor

23-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The governor of the State Bank of Vietnam (SBV) has expressed concern over the huge outstanding loans for build-operate-transfer (BOT) and build-operate (BT) infrastructure projects, noting that the loans may turn bad if no new government policies are adopted to back these projects.

Le Minh Hung raised the issue at the eighth sitting of the 14th National Assembly (NA), which opened today, October 21, Thanh Nien newspaper reported.

Hung explained that some VND53 trillion had been loaned to BT and BOT projects. In the year to September, bank loans for BT and BOT traffic infrastructure projects edged up 1.85 percent against the end of 2018, making up 1.4 percent of the total outstanding loans.

He pointed out that many BOT and BT projects had been completed and opened to traffic, but their commercial value fell far short of expectations. The outstanding loans of some VND53 trillion are at risk of turning bad, Hung said.

The governor proposed the government and the prime minister direct the relevant ministries and departments to support banks by issuing policies on how to mobilise resources to develop traffic infrastructure.

It is necessary to handle chronic problems with toll collection and the launch of non-stop toll collection systems throughout the country, Hung stated.

Speaking at the eighth sitting, Hung also remarked that as of September 30, credit had grown 9.4 percent against the figure seen at the end of 2018, adding that lending to high-risk sectors had been kept under control.

Real estate loans had picked up by 14.58 percent against the figure seen in late 2018, accounting for 19.14 percent of the total outstanding loans in the economy, he reported.

Besides this, Hung told the eighth sitting that the credit for industry added 6.76 percent, representing 19.61 percent of the total outstanding loans, with the growth of the processing industry recorded at 6.4 percent and the credit growth of the construction sector at 7.61 percent. Credit for the service sector grew by 9.27 percent.

Outstanding loans for the agricultural and rural sector increased by 6 percent, compared with the figure seen in late 2018, accounting for 24.26 percent of the total.

The country also saw the outstanding loans for small and medium enterprises edge up by 11.42 percent, making up 18.67 percent of the total. Credit for exports and supporting industries rose by 13.21 percent and 1.85 percent, respectively.

https://english.thesaigontimes.vn/72198/loans-for-bot-projects-may-turn-bad-sbv-governor.html

 


Category: Finance, Vietnam

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